US-based commercial real estate development company United Properties has signed a purchase agreement with private REIT CRI Income to acquire a Days Hotel for an undisclosed sum.
Located on the edge of the University of Minnesota Campus, in Minneapolis, the 130-room hotel will be United Properties’ first hotel acquisition, if the deal is successfully completed.
The six-storey, 107,000ft? Days Hotel is situated on 2.45 acres and offers amenities including a restaurant.
The hotel would be maintained and renovated by United Properties, and the company intends to retain the existing management company to run it.
According to United Properties, the due diligence process is currently underway and is expected to take 60 to 90 days.
Jon Ruzicka of Marcus & Millichap listed the property for sale in June.
United Properties assistant vice president Brandon Champeau said the company views the acquisition as a near-term investment opportunity in a prime location, with potential for future redevelopment.
“The operating income from the hotel will allow us the luxury of being patient as the company evaluates the property’s redevelopment potential over the next several years,” Champeau added.
“The property has been operating as a successful campus hotel for many years now, and with planned light rail adjacent to the site and the Minnesota Vikings use of TCF Bank Stadium in 2014-2015, we believe the hotel will only get better.”
The acquisition is expected to close in late December or early January.